Tips To Safeguard From Credit Card Fraud

By Author: Chris Lim
Total Articles: 4
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A card not present transaction (CNP) is a credit card purchase that is made via the Internet or through a telephone and the merchant does not have physical access to the card for swiping into a reader.
As a merchant, this will open up a loophole that fraudsters can exploit to defraud you and buy up large quantities of your products which will eventually end up badly for your revenue when the real owner of that credit card files for a chargeback.

Credit card fraud is not something to be taken lightly as each chargebacks will cost you in fees from your payment provider, not to mention the loss of your products as well as the corresponding revenue.
There are some things you can do to lessen the chance of a fraud. Look out for some common red flags. The most obvious one is when you see a large order of your most expensive products. This is usually coupled with a request for overnight shipping.

Obviously, a stolen credit card will not be valid for long thus the fraudster will want to get his products shipped as soon as possible. You will notice that the shipping address is different from the billing address, ...
... perhaps even in another country.
Fraudsters also tend to use free email accounts like Hotmail, Gmail, Yahoo, etc. Be wary of orders that come from those email domains.

The FraudLabs Pro fraud screening solution can detect all of the above and much more. For instance, the IP address of the fraudster can be used to detect his actual location. Often that alone can tell you if an order is fraudulent.

Another feature called IP velocity determines if the fraudster's IP address has been used to make multiple purchases within a short period of time from multiple merchants. Unless that person is a rich princess with a penchant for online shopping spree, it is more than likely to be a fraudster. The email velocity check works in a much similar fashion to detect a potential shopaholic fraudster.
One of the more powerful features in the FraudLabs Pro solution is the existence of continually updated blacklists for email addresses and IP addresses. Those email addresses and IP addresses in these lists are confirmed to be from scammers and fraudsters so that any transactions from these can be safely rejected.

The rule-based nature of the FraudLabs Pro fraud screening solution means you can customize how you want to trigger a manual review of an order by specifying what criteria to look out for. Then you can manually review an order before approving it or rejecting it.

Integrating the FraudLabs Pro fraud screening solution is as simple as calling the API from your web page. Just sign up for the FREE Micro license from FraudLabs Pro and you will be reaping the benefits of reduced fraudulent transactions in no time at all. The FREE Micro license is most useful to small business owners as it allows them to screen up to 500 orders per month. They are also usually the ones that are frequently targeted by fraudsters due to having less manpower to cope with fraud checking.

Join the FraudLabs Pro community today at FraudLabs Pro and let us all work together to reduce fraudulent transactions.